The Cayman Islands insurance and reinsurance sector continues to be a jurisdiction of choice for entities reinsuring risk from the USA. Although health and property and casualty insurance are the largest risks covered by Cayman captives, Cayman increasingly is becoming the most popular jurisdiction to reinsure (or retrocede) life and life annuity risk. With Cayman being the key jurisdiction for asset managers for the establishment of their hedge funds and private equity funds, their familiarity with Cayman's legal and regulatory environment is making Cayman the domicile of choice for asset managers acquiring life and life annuity blocks of risks. This familiarity coupled with Cayman's options on regulatory capital provides for capital efficient structures. As a consequence of Cayman's established Virtual Assets Service Provider legislation, sponsors are enquiring and establishing captives that combining the management of digital assets with insurance and reinsurance.
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